Buying a home in America just got even harder. Sales of previously owned homes slowed in June, while a key measure of home prices reached a record high, piling more pressure on people hoping to enter the housing market.
According to the National Association of Realtors, existing home sales dropped 2.4% from May to June, landing at a seasonally adjusted annual rate of 4.09 million units. While that figure is 2.8% higher than June of last year, it fell short of the roughly 4.21 million pace that economists had anticipated, according to FactSet.
Home sales have been stuck near the 4-million annual mark going back to 2023 — well below the historic norm of around 5.2 million sales per year.
One big factor keeping buyers on the sidelines: mortgage rates. Rates have trended upward in recent months following the start of the conflict between the U.S. and Iran, which has driven crude oil prices higher and stoked inflation fears. Even so, rates are still lower than they were a year ago.
Despite the sluggish sales pace, home prices kept climbing. The national median sales price rose 1.8% in June compared to a year ago, reaching $440,600 — the highest level recorded since the data series began in 1999, according to the NAR. Home prices have now increased year-over-year for 36 consecutive months.
Lawrence Yun, the NAR’s chief economist, pointed to the need for more homes on the market. “Without a doubt, the affordability is a major challenge for people who want to become homeowners, which is the reason why we need more supply,” he said.
The U.S. housing market has been in a downturn since 2022, when mortgage rates began rising sharply from the low levels seen during the pandemic. Last year, sales of previously owned homes were essentially flat and stuck at a 30-year low.
So far in 2026, seasonally adjusted existing home sales are up just 0.7% compared to the first half of 2025.
Many of the homes that closed last month likely went under contract back in April and May, when the average rate on a 30-year mortgage hovered between 6.23% and 6.53% — the highest levels seen since late August, according to mortgage buyer Freddie Mac.
